| Date: |
27-03-1995
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| Notification No: |
Customs Circular No 28/1995
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding declaration of ONGC installations in Bombay High as Designated Area
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Regarding declaration of ONGC installations in Bombay High as Designated
Area
Circular No. 28 dated
27th March 1995
The undersigned
is directed to refer to Ministry's instruction F.No. 450/65/92-Cus-IV dated
28.9.94 wherein the legal position regarding levy of Customs duty on rigs
brought in the designated area of the Exclusive Economic Zone and levy of excise
duty on oil produced at such sites was clarified. The implication of these legal
provisions is that any oil produced in the offshore installations in the said
designated area or within the territorial waters of India would be deemed to be
produced in India and subject to the levy of Central Excise duties under Section
3 of the Central Excises & Salt Act, 1944. In case, however, the oil is
produced at such of the installations which have not been designated by the
Ministry of External Affairs and which lie outside the territorial waters of
India, such oil would be deemed to be imported into India when this oil is
transferred to the mainland and be subject to customs duties as specified in the
Customs Tariff Act, 1975.
2. In
this regard the Ministry of Petroleum has proposed some time back the inclusion
of certain new ONGC installations at specified coordinates in the Continental
Shelf and the Exclusive Economic Zone in the designated area. This has been
concurred with by this Department; however, the issue of the notification by the
Ministry of External Affairs is pending. It may be appreciated that till such
time the notification is issued, the said coordinates would lie outside the
scope of the Customs Act, 2962 and the Central Excises & Salt Act, 1944 with
implication on duty changeability on the oil produced when brought into India.
While no excise duty can be levied on such oil, it would be subject to customs
duties when imported into the country.
3. Accordingly
as directed by the Board the list of coordinates indicating the ONGC
installations which are presently not notified as being in the designated area
is forwarded herewith, there may be other areas where drilling operations are in
progress which may not have been notified as designated areas. The Board desires
that it be considered appropriate to alert the concerned staff so that such oil
is subjected to duty appropriately as indicated above.
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